FINANCIAL CRIME IN SOUTH AFRICA

During the 1990s economic crime began to spiral in South Africa. This phenomenon coincided with the country's transition to a democratic state. The article outlines a number of steps that South Africa took to align its laws with international standards and to improve the legal tools of law enforcement to address the crime wave. A number of successes, for instance the improvement in tax morality, are pointed out but it is argued that co-ordination and co-operation between law enforcement agencies require more attention.     

THE FUNDING OF TRADITIONAL ORGANISED CRIME IN RUSSIA

The changed economic and political situation in Russia since the 1990s brought about a qualitative transformation of Russian organised crime, particularly in organisational and behavioural patterns. In particular, a pronounced shift from violent crime towards economic crime is being observed. Criminals try to establish and exercise control over legitimate businesses via corrupt politicians, local authorities and/or law enforcement officials. A tendency towards the consolidation of criminal groups within given territories is also discernible, whilst there are signs of increased interregional integration among different criminal organisations.     

Counter-intuitive effects of domestic law enforcement policies in the United States

In spite of the increase in domestic law enforcement policies in the U.S. drug related crime has followed a non-monotonic trend and cocaine and heroin prices, instead of increasing, have been dropping or remained stable over time. All this in a context of an increase in these drugs’ consumption during the 1980s and a small decrease during the 1990s. This paper provides an explanation to these counter-intuitive effects of domestic law enforcement policies. We model how drug lords respond to this type of policy within a conflict framework over the control of distribution activities for illegal drugs, which is novel. The model predicts drug distribution activities, drug prices and drug consumption. These predictions appear to be consistent with the empirical evidence in the United States.     

Econom(etr)ics of crime and litigation

Economists approach the behaviour of potential criminals, litigants and law enforcement agencies in terms of rational choice: the actors choose the best alternatives in terms of costs and benefits within the choices open to them. The prime focus of economists is on the general factors in society affecting the crime and litigation level and on the interaction between the crime and litigation level and the legal system. In doing so they have to study the interaction between the micro level of individual decision making and the macro level of the law enforcement system reacting on these decisions. Data are often only available at aggregate (macro) level. Econometric studies at the macro level, especially time series, have the problem that many effects have to be estimated from a limited number of data. Various types of studies and some empirical results regarding crime, litigation and the workload of judicial services are discussed.     

Does environmental law enforcement matter for financial reporting quality?

The Chinese government’s recent Environmental Inspection Program (EIP) eliminates a layer of regulatory actions and holds local government officials accountable for enforcement of environmental laws. We examine two aspects of the impact of the EIP on financial reporting quality. First, we derive a simple analytical model to show that the level of earnings management (EM) depends on the cost and probability of EM detection. This increase in environmental law enforcement (due to the EIP) raises the cost of environmental violation to a firm and managers. To respond to the increased costs, a firm engages in less EM. Second, consistent with the model prediction, we find firms subject to the EIP engage in less EM than otherwise equivalent firms located in non-EIP jurisdictions. The effect of the EIP on EM is more pronounced for firms with adverse agency problems and poor internal controls. Additional analysis suggests that air quality level is a moderating factor for the impact of the EIP on EM. Collectively, using the natural experiment of the EIP, we find a new determinant of EM. Environmental law enforcement deters EM and enhances financial reporting quality.     

An Economic Analysis of Teenage Fertility

Abstract . The relationship between the probability of a teenage birth and various independent variables representing fecundity, attitudes, resources, and the economic opportunities for a sample of teenage females drawn from the 1980 census is examined. A theoretical framework, based on Becker's model, is employed to describe the birth-decision process and tested using a logit technique. The findings suggest that receipt of public assistance income and perceived economic opportunities are more important in explaining fertility probabilities among older (18–19 years old) teenagers. Among younger teens, accessibility to family planning and abortion services, and religious attitudes toward family planning ate more important predictors of fertility.     

Is There a Natural Rate of Crime?

Studies in the economics of crime literature have reached mixed conclusions on the deterrence hypothesis. One explanation that has been offered for the failure to find evidence of a deterrent effect in the long run is the natural rate of crime. This article applies univariate unit root tests to crime series for the United Kingdom and United States and panel unit roots to crime rates for a panel of G7 countries to examine whether there is a natural rate of crime. Our main finding is that when we allow for two structural breaks in the univariate unit root test and a structural break in the panel data unit root test, there is strong evidence of a natural rate of crime. The policy implications of our findings is that governments should focus on altering the economic and social structural profile that determines crime in the long run rather than increasing expenditure on law enforcement that will at best reduce crime rates in the short run.     

Firm-specific wage growth and changes in the labor market for managers

This paper analyzes recent changes in the employment relationships between managers and firms. In both Becker's and Lazear's models of firm-specific wage growth, compensation is deferred from early in an employee's tenure with a firm until later in the contract. The deferred compensation bonds the worker to the firm. Based on cross-sectional data from Current Population Surveys, rates of firm-specific wage growth are estimated for the managerial labor market. The findings show that the rate of wage growth that is firm-specific for managers in manufacturing industries declined significantly during the early 1980s. It is estimated, for example, that a manager with 12 years of tenure in a manufacturing firm enjoyed, on average, a 25% wage premium in 1979 over an otherwise similar manager who was a new hire in a firm. By 1983 the firm-specific wage premium for a manager with 12 years of tenure was only 5%. These changes represent a significant reduction in the strength of the employment bond between firms and managers, and a reduction in the incentive effects previously enjoyed by firms from the use of deferred-compensation schemes. This change is consistent with the significant increases in the displacement rates of managers that occurred during the 1980s.     

Measuring Socioeconomic Effects When Using Income as Quality of Life Indicator

Abstract . By generalizing Stigler and Becker's idea of maintaining the “capital stock intact,” and incorporating it with other contributions to welfare economic analysis, this paper presents a modified conceptual framework for measuring and adjusting impacts of socioeconomic and environmental factors when income or consumption expenditure is used solely as a quality of life indicator. Such measurements and adjustments are made for differences in public needs and in the process of satisfying these needs. Application of this conceptual framework is illustrated, using statistics on police protection and crime rates.     

Stability of a crime level equilibrium

We consider crime level in an economic market with a supply of potential criminals. These criminals differ in their opportunity cost for committing crime, reflecting differences in the value of foregone opportunities such as performing productive labor. The realized demand is influenced by the expected value for crime, which depends on several socio-economic variables including wealth, police enforcement, and police arrest ability. After determining the equilibria level suggested by our approach, we propose a dynamic setup and study the stability of this system. Two critical enforcement levels are determined. Exceeding the lower enforcement threshold will push crime to stabilize (converge) to an equilibrium level. Correspondingly, exceeding the higher enforcement threshold will collapse the crime market to zero.     

Competition in law enforcement and capital allocation

This paper studies inter-jurisdictional competition in the fight against crime and its impact on occupational choice and the allocation of capital. In a world where capital is mobile, jurisdictions are inhabited by individuals who choose to become either workers or criminals. Because the return of the two occupations depends on capital, and because investment in capital in a jurisdiction depends on its crime rate, there is a bi-directional relationship between capital investment and crime which may lead to capital concentration. By investing in costly law enforcement, a jurisdiction makes the choice of becoming a criminal less attractive, which in turn reduces the number of criminals and makes its territory more secure. This increased security increases the attractiveness of the jurisdiction for investors and this can eventually translate into more capital being invested. We characterize the Nash equilibria—some entailing a symmetric outcome, others an asymmetric one—and study their efficiency.     

电子商务安全管理的路径探析

文章通过简要分析电子商务安全管理存在的隐患,探讨了防范电子商务安全问题的法律手段、技术手段和监管手段。文章认为,一方面,要不断地完善电子商务的立法和执法,加大电子商务犯罪活动惩治力度;另一方面,在加强电子商务中消费者的权益保障意识的同时,还应从技术手段入手提高电子商务安全管理,构建完善的安全管理体系。如果在电子商务中能够多途径并抓,必定能够达到完善电子商务安全管理的目的。     

Optimal law enforcement when victims are rational players

The economic analysis of crime usually views a victim as a passive party whose role is limited to suffering harm. In this paper, we extend the economic theory of law enforcement by modeling victims as an active party in criminal deterrence. First, they may take some precautions to avoid victimization. Second, they may or may not report their victimization. The lack of reporting weakens law enforcement and criminal deterrence by reducing detection rates. This suggests that victims could be encouraged to report by being paid a compensation. Nevertheless, compensating victims certainly reduces precaution. We argue that such effect never offsets the gains obtained in terms of criminal detection and apprehension. Received: December 1998 / Accepted: January 2000     

Compliance with Producer Responsibility Legislation: Experiences from UK Small and Medium‐sized Enterprises

This study investigated the legal performance of UK small and medium‐sized enterprises (SMEs) with producer responsibility legislation. The research incorporated legislation controlling packaging and packaging waste, waste electrical and electronic equipment and the restriction of the use of certain hazardous substances in electrical and electronic equipment. Compliance audits and interviews were conducted with SMEs, regulators, government officials and SME support organisations. A total of 44 SMEs from the north‐west of England were audited between April and September 2008. The study's findings suggest:

• low levels of ‘letter of the law’ and ‘spirit of the law’ compliance;
• enforcement activity and surveillance of SME compliance was generally low; there has not been any formal enforcement action taken under the WEEE Regulations or the RoHS Regulations and enforcement under the PER Regulations is extremely low.

Recommendations on how to improve SME compliance control systems are provided. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

Lethal Police Response as a Crime Deterrent:

A bstract . Since Gary Becker's article on the economics of crime and punishment , economists have explored extensively the possible deterrence effect of standard enforcement variables , not only for their public policy implications but to test the hypothesis that illegitimate behavior is sensitive to measures of risk and reward (loss) as well as social, psychological and cultural forces. Research has been needed on the probability of death to the offender caused by official police action—"lethal response." To measure the criminal reaction to intercity variations in the rate of civilian killings of police in the line of duty, a cross-sectional study of 57 cities was undertaken. Variations in non-homicide violent crime rate were found to be inversely related to variations in the intercity lethal response rate. this suggests the presence of a deterrence effect, a one Sixth of one percent decrease in the rate of non-homicide violent crime being associated with a one percent increase in the lethal response rate.     

最低工资对正规部门、非正规部门工资和就业的影响

本文根据是否遵守最低工资标准,将劳动部门分为正规部门和非正规部门。利用中国健康与营养调查（CHNS）微观数据,运用固定效应模型和Multinomial Logit模型,本文实证研究了2004年以来,最低工资对正规部门和非正规部门工资和就业的影响。研究发现：最低工资每提高1%,正规部门工资会增加0.5%,非正规部门平均工资下降统计不显著,而处于最低工资线附近的非正规部门劳动者工资下降0.77%;最低工资提高使得失业者向非正规部门流动,而非正规部门劳动者向正规部门流动,最终将有利于劳动者在正规部门就业。因此,政府在制定最低工资制度时应全面考虑最低工资标准作用效果的部门差异。     

中国传统文化对民营企业管理的影响机制研究

近年来,随着我国经济的不断发展,大量外企进驻中国,它们以"合作方"的身份大量收购我国民营企业,由于我国民营企业的家族式管理的滞后性导致我国民营企业成为了外企的"代言人"。所以本文基于中国传统文化的视角,深入剖析传统文化对民企的管理模式、管理战略、执行力度的影响,由此展开中国传统文化对中国民营企业管理的作用机制研究,使得民营企业能正确认识我国的传统文化的同时,将一些符合其企业环境的文化应用到企业内部管理中,让民企成为我国文化的"代言人"。     

非法拘禁罪的立案标准

非法拘禁罪是近些年来多发的一种犯罪,但刑法关于非法拘禁罪的立案标准却不甚明了。     

Non‐competes,business dynamism,and concentration: Evidence from a Florida case study

Most research on non‐competes has focused on employees; here we study how non‐competes affect firm location choice, growth, and consequent regional concentration, using Florida's 1996 legislative change that eased restrictions on their enforcement. Difference‐in‐differences models show that following the change, establishments of large firms were more likely to enter Florida; they also created a greater proportion of jobs and increased their share of employment in the state. Entrepreneurs or establishments of small firms, in contrast, were less likely to enter Florida following the law change; they also created a smaller proportion of new jobs and decreased their share of employment. Consistent with these location and job creation dynamics, regional business concentration increased following the law change in Florida. Nationwide cross‐sections demonstrate consistent correlations between state‐level non‐compete enforcement and the location, employment, and concentration dynamics illustrated in Florida.     

Private law enforcement with competing groups

This paper introduces groups that are in conflict against each other in law enforcement policy. These groups can have an effect on the process of law enforcement by making upfront investments, such as bribes. We also investigate consequences when a policy maker acts to maximize a bribe instead of social welfare. Thus, this paper presents an inclusive framework for incorporating private law enforcement, corruption and avoidance activities. This article shows that this competition can lead to moderate and more efficient law enforcement activities. This indicates that inefficient law enforcement by authority with harm reduction motivation can be avoided. Additionally, this paper shows that depending on the policy maker’s objection between rent-seeking motivation or social welfare maximizer, deterrence effects vary. This paper provides a clear mechanism that the rent-seeking motivated policy maker tends to set less severe enforcement policies than the social welfare level.